Fla. Timeshare Violated Debt Collection Laws, Class Action Says

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A proposed class action lawsuit was filed last week against a timeshare company as well as a foreclosure company alleging the businesses sent collection notices to individuals that revealed personal information about other alleged debtors, violating debt collection laws.

Plaintiffs Peter and Mary Ann Forte filed the lawsuit in Florida federal court with accusations that Staack & Simms PA, a law firm that does business as Timeshare Trustee LLC and The Resort of Cocoa Beach Association Inc. sent collection letters and lien claims by mail to customers who allegedly owed debts to the resort.

According to the couple, the mailings purposely contained a list of others who also owed debts to the resort. The list allegedly included debtor names, addresses and the amount of the alleged debt.

“It is reasonable to conclude that defendants have engaged in similar behavior to that described in this complaint, including publishing lists of alleged debts and debtors, in those and other timeshare collection efforts,” the claim read.

The proposed class action lawsuit says that Timeshare Trustee violated the Fair Debt Collection Practices Act (FDCPA). The lawsuit quotes the relevant part of the FDCPA as saying, “A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt.”

The Fortes have also accused Timeshare Trustee and the resort of violating the Florida Consumer Collection Practices Act (FCCPA). By including a list of other alleged debtors to members of the public, the couple say this action constituted the publication of a so-called “deadbeat list” to attempt to collect debts, and this is strictly prohibited by the Act.

The couple claims that the companies further violated the act by disclosing information about other debtors to individuals outside of the individual debtor or the debtor’s family.

The Fortes allege in the complaint that Timeshare describes on its website that it engages in “processing non-judicial foreclosures.” Based on that information, the plaintiffs deemed it “reasonable to conclude” that the company published such lists to include in other mailings to alleged debtors that would include the debt collection lists with personal identifying information.

In January, the plaintiffs received a collection letter from Timeshare Trustee that demanded payment for an alleged debt owed to the Resort on Cocoa Beach, according to the claim. After the initial communication, Timeshare followed up with a second communication in March, claiming there was a lien against the Fortes’ property and other proposed Class Members, listing the amounts of alleged debt.

The plaintiffs seek to represent a Class of individuals who received communication from the named companies in the form of debt collection letters or lien notices where the communication has included information about other alleged debtors while addressing the addressee’s debt.

The couple seeks compensatory and statutory damages in an amount to be determined at trial, pre- and post-judgment interest and attorneys’ fees and costs.

The Fortes are represented by Nicolas Ben Harvey of Ossi Withers & Harrison PA and Zachary West of Berman & Berman PA.

The Florida Timeshare Debt Collection Class Action Lawsuit is Forte, et al. v. Staack & Simms PA, et al., Case No. 8:16-cv-01027, in the U.S. District Court for the Middle District of Florida.